Licensing and access to land for mineral exploration and development continues to be governed by the State Government’s effective regulatory regime. South Australia is the highest ranked state in Australia/New Zealand for Mining Project Approval Processes (Minerals Council of Australia, 2013).

Mineral Production (sub-target $8.5 billion by 2020)

In 2014-15, the value of mineral production was $4.399 billion.

Factors influencing the value of minerals produced include:

commodity prices,

global economic climate; and

federal fiscal/taxation regime.

The increase in the State’s mineral production is primarily due to the significant increase in production of iron ore.

The outlook for the State’s major mineral commodity - copper, is very positive and is expected to be maintained or increased as major mines (Olympic Dam, Prominent Hill and Kanmantoo) continue to produce at near capacity and look at increasing run-rates and making productivity improvements.

Mineral Processing (sub-target $1.5 billion by 2020)

In 2014-15, the value of mineral processing was $0.78 billion (subject to further updates). The value of minerals processing has stagnated over the past ten years but recent announcements indicate the potential to reach the $1.5 billion target by 2020.

There are currently two major contributors to mineral processing in South Australia:

Arrium’s Whyalla Steelworks—manufacturing steel from iron ore derived from the Middleback Ranges; and

There is potential for growth in the State’s mineral processing with Nyrstar announcing in May 2014 it would be proceed with a $514 million investment to transform the Port Pirie Smelter into an advanced metals recovery and refining facility, on the back of a financing and funding support package with the South Australian Government and the Australian Government’s Export Finance & Insurance Corporation (EFIC). This upgrade of the Port Pirie Smelter is a significant development securing the long-term future of the Port Pirie Smelter.